News

Friday 11 January 2013

People power



The global brand that is Starbucks took a bit of a battering at the end of last year as they came under fire for not paying ‘enough’ UK corporation tax. Under huge pressure from its customers, the coffee giant agreed to pay £20m in tax over the next two years. 

When the story first broke, protests outside Starbucks shops were reported, and its scores on YouGov’s BrandIndex plummeted to a four year low. This was clearly something the public felt very strongly about and wanted their voices to be heard. 

So it was no great surprise when Starbucks announced its ‘Monday promotion’ offering any tall latte for £1.50 before 11am on a Monday from 7 January – 18 February. Although this is by no means the first promotion Starbucks has run, it is a first for the coffee corporation to communicate an offer via a TV ad in the UK. Paired with precision timing and slick execution, this is surely a clear indication that Starbucks is trying to build bridges with its customers.

For PR professionals, the importance of audience is one of the earliest lessons to learn, and when your audience can have such a significant impact on your brand, it’s essential to listen to them.

From what was a crisis situation, Starbucks did indeed listen to its audience and acted quickly to prevent the story escalating further. Kris Engskov managing director of Starbucks in the UK, in a speech to the London Chamber of Commerce, sums it up perfectly, ‘We've learned it is vital to listen closely to our customers – and that acting responsibly makes good business sense.’

Hear, hear!

Bethan Simkins
Account Manager